Tax payments

The sections below contain tax saving advice for people making tax payments.

Reduced payments on account

To avoid claims for reducing payments on account from being missed, use form SA303, available from HM Revenue & Customs. If a claim is included on the tax return or in a letter it may not be seen.

Tax calculation

If you calculate your tax position, HM Revenue & Customs will issue a copy of their tax calculation to you once they have processed your return. Even though you will have entered a figure on your tax return, showing your liability for the year, HM Revenue & Customs's tax calculation may show a different figure. This could be due to an error on either side. Unless you query the difference HM Revenue & Customs will request payment of the figure shown on their calculation. So always check the tax calculations and statements of account.

Payments on account not due

If you calculate your own tax position for the year, you will need to consider whether payments on account of your following year's tax liability are due. They are not due if:

• your total income tax, minus deductions, in the previous year is below £500, or
• at least 80% or more of the tax due is covered by tax deducted at source (eg PAYE, tax credits etc).